Historically weak new home sales

Norway has recorded its weakest May for new home sales since data collection started in 2010, signaling a significant downturn in the housing market. According to the Norwegian Home Builders' Association (Boligprodusentene), sales of new dwellings dropped by 22 percent in May this year compared to the same month in 2025.

Year-to-date figures are equally stark, with 5,985 new homes sold, marking a 16 percent decrease compared to the first five months of last year. Maria Hoff, acting CEO of Boligprodusentene, attributed the slowdown to a combination of high construction costs, market uncertainty, and weak profitability, which are collectively hindering the launch of new projects.

However, the picture is not entirely bleak. In contrast to the slump in sales, the initiation of new housing projects has seen a notable increase. The level of new construction starts was 18 percent higher in May compared to May 2025, suggesting that developers are still investing in future building despite the current sales challenges.

This divergence between declining sales and increasing project starts indicates a complex market dynamic. While builders may be anticipating future demand or responding to other economic factors, the immediate reality for the new housing sector is one of historically low sales figures.

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High construction costs, uncertainty, and weak profitability are stopping new projects.